Fewer and fewer people drink alcohol regularly. German beer brewers are also noticing this. What is the state of the industry and how up-to-date is the German purity law?
“German Beer Day” celebrates Germany’s rich brewing tradition. With over 1,500 breweries, the Federal Republic is the absolute leader in a European comparison. However, the industry is facing major challenges: beer sales are declining, prices are rising and climate change is also causing problems for hop farmers.
For Holger Eichele, managing director of the German Brewers’ Association, Germany is still a unique country in terms of beer production. In an interview with t-online, Eichele explains how German beer is viewed internationally, how it differentiates itself from other competitors and whether “beer inflation” has ended or not.
t-online: Mr. Eichele, how do you spend German Beer Day?
Holger Eichele: To be honest, it’s an almost normal working day for us, except that the phone doesn’t stop – everyone wants to know something about beer.
So no time for an after-work beer together?
No, unfortunately not, but maybe we’ll catch up on that at the weekend.
Beer prices have risen in recent years. What is the current state of “beer inflation”?
Compared to food as a whole, beer has only increased slightly in price in recent years. Beer remains affordable as the national drink, despite price increases. We are really in the green in terms of price. And compared to other EU countries, beer in German pubs and supermarkets is also very cheap. I don’t see any inflation in beer prices. Nevertheless, prices will have to rise in the medium to long term in order to secure the future of the breweries.
Breweries are exposed to enormous cost pressure. It is an energy-intensive craft. Due to the increased energy costs, but also higher costs for new glass and brewing malt, companies’ expenses have risen dramatically. The breweries can only survive if at least some of these cost increases are passed on. It would be gratifying if the large retail companies would slowly understand this too.
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How do you see the future of small and medium-sized breweries in Germany given the growing popularity of craft beers and international brewing companies?
Germany is the country of family breweries. That’s what makes us unique. No other European country has so many successful private breweries. We have a huge variety and many strong local and regional brands – including craft beer, by the way. Sure, times are tough, but the breweries are holding on bravely. Many families are brewing in the seventh or eighth generation – they have experienced completely different times.
Which country is the biggest competition in Germany and internationally?
German beer is highly regarded on the world market. On the one hand because of the high quality and on the other hand because of the great variety. Of course, the Purity Law also plays its part. It is an absolutely unique selling point that is admired and sometimes envious.
I don’t know of any beer nation that can seriously compete with Germany’s brewing culture. The bigger competition is trends on the drinks market, such as Aperol Spritz or Hugo and of course wine. In the past, people had their favorite beer that they remained loyal to throughout their lives. Today consumers want more variety and diversity. Breweries have to adapt to this.
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What new types of beer or brewing trends are you seeing in the industry right now? How are breweries responding to changing consumer tastes and preferences?
Germany is the country of Pils drinkers – Pils still takes up half of the market. However, we can observe that light beers are becoming more popular. Non-alcoholic beer now also has a market share of almost ten percent. These beers are often mineral and isotonic and are also very popular with athletes. With more than 800 non-alcoholic brands – also brewed according to the Purity Law – we also reach households that may not have had beer in their fridge before.
